Following the underwriting and conversion of listed options, EganStreet has now secured $11.9 million in funding to progress its 100% owned, high grade advanced Rothsay Gold Project, located just 440km NE of Perth in the Yilgarn Province of Western Australia.
Results of recent infill and extensional drilling, including hits of up to 159g/t Au, supports the current (and soon to be upgraded) high-grade resource of 880kt @ 10.9g/t for 307koz of gold and confirms the upside potential; this potential exists along strike and down dip of the existing shear hosted resource, as well as along parallel shears that have seen very little modern exploration. There is at least 14km strike length of prospective shears on the granted Mining Leases that form the core of EganStreet's holdings.
A robust PFS was completed in May 2017, highlighting a low and potentially easily financeable $25 million direct capex underground operation; this is now being progressed to a DFS, expected for completion in Q2, 2018, with financing and permitting to follow soon thereafter. Due to historic mining operations there is existing underground development, which is a factor in the relatively low estimated capex requirements.
In addition to the drilling, other ongoing work includes metallurgical test work (recent work has returned gold recoveries averaging 96.4%), with the results of this, and the expected resource upgrade to be utilised in the DFS.
We have recently completed a research report on EganStreet, which is run by a team with extensive experience in the resources sector. We have a risked, base case price target of $0.44/share with significant upside – this target takes into account a share base diluted for the option conversion and a conceptual funding scenario. To access IIR’s report please follow the link below.